Ethical choices in business involve making decisions that align with moral principles and uphold the values of honesty, fairness, and responsibility. These choices impact not only the internal functioning of an organization but also its reputation and relationship with external stakeholders, including customers, investors, and the community. Business leaders are often faced with dilemmas where profit motives may conflict with ethical considerations. In such cases, ethical decision-making requires balancing short-term gains with long-term consequences, legal obligations, and societal expectations. This topic explores frameworks for ethical analysis, real-world case studies, and the role of individual and organizational values in guiding responsible business conduct. Ethical choices strengthen brand loyalty, promote sustainable practices, and build trust, which are essential for long-term success in a competitive environment.

1. ETHICAL CHOICES IN BUSINESS
Dr DINESH S
Assistant Professor
Management Sciences
Sri Ramakrishna College of Arts & Science
(Autonomous)
Coimbatore - 641 006
Tamil Nadu, India

2. What we will learn today
• Define and discuss what business ethics means
• Draw a mind map, diagram or list of the ethical
issues faced in business
• Answer questions on the ethical decisions of
three companies

3. What is meant by ethics?
An ethic is a moral principle or set of moral values held by an
individual or a group.
Ethical behaviour is behaviour which is considered to be right
and moral.
Business ethics are the values and principles which operate in
the world of business. They form the moral framework of the
organisation.

4. Business ethics help firms decide what actions
are right or wrong in certain circumstances.
E.g. Should a firm relocate to a country paying
lower level of wages?
Should a firm release a life-saving drug after
limited testing?
Should advertising aimed at children be
restrained?

5. Comparing Working Conditions
Bangladesh The UK
Wage per month: £12 £813
Wage per week: £3 £203
Wage per hour: 33p £5.35
Hours per week: 90hrs 38hrs

6. What ethical issues are faced by
business?
• Should firms use child labour?
• Is animal testing needed in products and ingredients?
• What wages should firms pay to poor countries?
• To what extent should firms seek to be environmentally friendly?
• Should firms get involved in certain activities?
e.g making weapons

8. Who cares about business ethics?
• Customers
• Managers/Owners/Shareholders
• Pressure Groups/Activists
• Workforce
• The Community
• Trading Partners

9. Why be ethical?
•Create good image and good press
•To act within the law
•Because the owners want to be
•It is one of their unique selling points
•To attract customers/employees/investors
•To be socially responsible

10. Two sides to every story
• Companies often find it difficult to please all of its stakeholders, as they
have different interests.
• Being ethical depends on an individual view of what is
right and wrong. What might be considered
good behaviour to one individual, may
seem bad to another.
• Ultimately companies aim to make a profit and
sometimes this can conflict with acting in a responsible way.
• Larger, global companies can often find it difficult to regulate their
activities in other countries.

11. The worst offenders
The Fraser 2006 rating on ethical reputation (1st being regarded as least
ethical), based on interviews with 1,300 adults:
1)McDonald's
2)Nike
3)Shell
4)Adidas
5)Barclays
6)Coca-Cola
7)BP
8)Camelot (National Lottery)
9)American Express

12. True or False?
Is the following statement true or false?
“Ethics has to do with whether my feelings are right or
wrong.”
True – but we must realise that
sometimes our feelings can cloud are
judgement and make it difficult to see
both sides.

13. True or False?
Is the following statement true or false?
“Ethics has to do with my religious beliefs.”
True – it can be linked to religious
beliefs, but remember it is much more
than this.

14. True or False?
Is the following statement true or false?
“Being ethical is doing what the law always requires.”
True – people and business have to
follow law, but remember that some
laws may be unethical.

15. True or False?
Is the following statement true or false?
“Ethics consists of the standards of behaviour our
society expects.”
True – but remember that society is
sometimes unpredictable and cruel.

16. THANK YOU